08.01.2017 Views

3e2a1b56-dafb-454d-87ad-86adea3e7b86

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Chapter 15 Lean synchronization 433<br />

Figure 15.3 Reducing the level of inventory (water) allows operations management (the ship) to see the problems<br />

in the operation (the rocks) and work to reduce them<br />

Synchronization, ‘lean’ and ‘just-in-time’<br />

Different terms are used to describe what here we call ‘lean synchronization’. Our definition<br />

– ‘lean synchronization aims to meet demand instantaneously, with perfect quality and no waste’ –<br />

could also be used to describe the general concept of ‘lean’, or ‘just-in-time’ (JIT). The concept<br />

of ‘lean’ stresses the elimination of waste, while ‘just-in-time’ emphasizes the idea of producing<br />

items only when they are needed. But all three concepts overlap to a large degree, and<br />

no definition fully conveys the full implications for operations practice. Here we use the term<br />

‘lean synchronization’ because it best describes the impact of these ideas on flow and delivery.<br />

Lean synchronization and capacity utilization<br />

Lean synchronization has many benefits but these come at the cost of capacity utilization.<br />

Return to the process shown in Figure 15.2. When stoppages occur in the traditional system, the<br />

buffers allow each stage to continue working and thus achieve high-capacity utilization. The<br />

high utilization does not necessarily make the process as a whole produce more. Often extra<br />

‘production’ goes into buffer inventories. In a lean process, any stoppage will affect the whole<br />

process. This will necessarily lead to lower-capacity utilization, at least in the short term.<br />

However, there is no point in producing output just for its own sake. Unless the output is<br />

useful and causes the operation as a whole to produce saleable products, there is no point in<br />

producing it anyway. In fact, producing just to keep utilization high is not only pointless, it<br />

is counter-productive, because the extra inventory produced merely serves to make improvements<br />

less likely. Figure 15.4 illustrates the two approaches to capacity utilization.<br />

The lean philosophy<br />

Terminology in this area is sometimes a little confusing and has evolved over time, as mentioned<br />

previously. To make things more complicated, lean synchronization can be viewed as a<br />

broad philosophy of operations management, a set of useful prescriptions of how to manage<br />

day-to-day operations, and a collection of tools and techniques for improving operations<br />

performance. Some of these tools and techniques are well known outside the lean sphere and<br />

relate to activities covered in other chapters of this book. As a philosophy, lean synchronization<br />

is founded on smoothing flow through processes by doing all the simple things well, on<br />

gradually doing them better and (above all) on squeezing out waste every step of the way.<br />

Three key issues define the lean philosophy, the involvement of staff in the operation, the drive<br />

for continuous improvement, and the elimination of waste. 2 We will look at the first two issues<br />

briefly, but devote a whole section to the central idea of the elimination of waste.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!